AOL and Time Warner's £218bn mega-merger in 2000 was meant to herald a revolution, combining content and internet in a way that was never seen before. Yet the deal of the century has turned sour.

First the collapse in the dotcom market and US economic slowdown and then September 11, which saw the internet sector, economy and country hit a collective rock bottom, sent the world's largest media company into crisis and made the marriage of the two companies look like a catastrophic mistake.

Share prices have nosedived due to a failure to hit company targets while a colossal $54bn was written off to reflect a loss in the company's value since the merger. In turn the executives have been blasted by shareholders for the "absurd" salaries paid to them.

Amidst calls for his sacking, the chief executive, Gerald Levin, managed to jump and not be pushed, and has been replaced by Richard Parsons, now the most powerful black executive in corporate America.

Seen as a conservative and a realist, his promotion from co-chief operating officer has been seen as a victory of Time Warner's old guard over AOL's rising stars and a symbol of the internet service's falling star in the media world.

And, unlike Mr Levin, renowned for his optimism, Mr Parsons has been prepared to face up to the market with sober statements such as "There will be no recovery in advertising this year", forecasting gloom for the company.

But AOL Time Warner's immense presence remains. It is still the world's largest internet service provider by far. Its films include Harry Potter and The Lord of the Rings, already two of the biggest grossing films of all time, and whose respective sequels will rake in billions over the next decade. Its TV channels still churn out many evergreen series such as ER and Friends. And in the UK it has extended its influence by acquiring IPC's stable of magazines.

However, should the freefall continue, Mr Parsons may come to believe he has been left a poisoned chalice and that casting off AOL altogether, thus negating the merger meant to have changed the rules of the media game, may be the only option.